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Gulf Holding Company (GHC), a highly diversified Kuwait-based holding company, this week announced a net profit of 18.72 million Kuwaiti dinars (BD26.62 million) for the financial year 2006-07, an increase of 59 per cent over the previous year.
Net earnings per share stood at 26.75 fils, compared to 16.8 fils in fiscal 2006. Approving the company's excellent financial results, the board of directors proposed the company's first dividend of 20 per cent, payable as 10 per cent cash and 10 per cent bonus shares, subject to the approval of the annual general meeting.
Company chairman Abdul Rahman Al Jasmi said: "GHC has seen steady growth ever since its inception two years back and this can only be expected from a company that is well-attuned and responsive to the business dynamics of the market as well as the investment needs and opportunities available to the discerning client.
"GHC's rational approach, coupled with exclusivity, has ensured that retail and residential units in both its flagship projects were sold in record time. The substantial revenue earned from these successful transactions is reflected in this year's financial result."
Furthermore, Mr Al Jasmi added GHC's initiative to list its subsidiary Villamar Sukuk Company Limited's $190 million Sukuk bond issue on the Dubai International Financial Exchange (DIFX) had been successfully executed with the commencement of trade of the Sukuk, on the DIFX.
The listing was arranged by Merrill Lynch International (MLI), which is one of the world's leading wealth management, capital markets and advisory companies with offices in over 40 countries, and was jointly lead-managed by Al Rajhi Banking and Investment Corporation, which is one of the world's largest Islamic banks and the largest listed bank in Saudi Arabia. MLI were also the mandated book-runners for this issue which closed on April 18.
"Going forward I am confident that GHC and its subsidiaries will continue their exemplary performance, propelling the company to new heights of success as a trusted holding company that promises unflinching quality," he added.
Elaborating on the key growth drivers, Ahmed Al Ameer, vice-chairman & chief executive officer, GHC, said: "We are extremely proud of the 59 per cent growth in net profit over the previous year that we have managed to post in 2007.
"This rise in net profit to KD18.72 million gains even more in significance as it comes against the backdrop of the global mayhem from the sub-prime crisis, rapidly rising global prices for raw materials and a near slowdown in some of the most advanced markets. It is a clear vindication of our commitment towards continued growth and value creation for all our stakeholders.
"Furthermore, the year witnessed some of our most ambitious efforts, which included the setting up of Gulf Management Services, an associate company in Bahrain jointly with Aswaq Management and Services that offers property consultancy and assistance in design, sales etc. Another significant initiative was the setting up of an affiliate, Daheyat Al Areen Real Estate Development Company, to develop the mixed-use project in the Downtown Al Areen development. We also opened a state-of-the-art headquarters in Burj Al-Khaleej in the Watiya area of Kuwait."
GHC has drawn up an ambitious expansion and diversification programme, which will cover the GCC region in the near term and the markets of North Africa and South Asia, particularly India, in the long term.
The company will also open more offices in the region and foray into the telecommunications, energy and logistics sectors, in addition to its continuing focus on real estate.
